All states › Kentucky
Every step to open an LLC in Kentucky and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of State · Department of Revenue · Office of Unemployment Insurance · Education and Labor Cabinet · Department of Workers' Claims.
This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.
Customize this checklistPopular Kentucky business types:
Do this first. The state tax and payroll accounts ask for your registration details.
Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.
This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.
Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.
Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.
If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.
File Articles of Organization (or the state's equivalent) online through FastTrack (Secretary of State online services).
You need a registered agent with a street address in Kentucky to receive legal papers and state notices. Use a registered agent service if you have no one local.
LLCs and corporations file an assumed name certificate with the Secretary of State. Sole proprietor filing location not confirmed.
For-profit corporations pay a one-time organization tax based on authorized shares ($10 minimum for 1,000 shares or fewer).
Register for withholding and sales tax with the Department of Revenue through Kentucky Business One Stop (onestop.ky.gov), using the Department of Revenue Tax Registration option. A paper Form 10A100 is also available.
Many Kentucky cities and counties levy occupational license taxes on wages earned where work is performed. For example, Louisville Metro charges 2.2% for residents and 1.45% for nonresidents. Employers must register and withhold for each jurisdiction separately, and state reciprocity does not waive these.
Most LLCs and corporations owe Kentucky's limited liability entity tax each year, with a $175 minimum. It applies even to many small or unprofitable entities.
Check every city and county where employees work. Each one may have its own license tax, return form and due dates.
Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.
Kentucky calls it a Sales and Use Tax Permit. Register with the Kentucky Department of Revenue through Kentucky Business One Stop Portal (or Form 10A100; remote sellers can also use the Streamlined SSTRS) before you make your first taxable sale in Kentucky. You'll collect tax from customers and send it to the state.
Give your supplier Form 51A105, Resale Certificate so you don't pay tax on inventory you'll resell. The buyer must hold a valid Kentucky Sales and Use Tax Permit and enter its account number; it can be used as a blanket or single-purchase certificate, and contractors cannot use it. Keep certificates your own customers give you, too.
Out-of-state sellers must register once sales into Kentucky pass $100,000 (previous or current calendar year), even with no office here.
Kentucky's taxable service list keeps growing, so recheck it each year before assuming a service is exempt.
Applies once you pay W-2 employees who work in this state.
Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.
Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.
Register once you pay wages to employees working in Kentucky. Reports and payments are usually quarterly.
Required at 1 or more employees. Buy coverage from an insurer authorized by the Department of Insurance or get approval to self-insure. Post a notice of coverage at your primary office and where payroll and personnel matters are handled.
Report within 20 days of the first day the employee performs paid work. Report online at ky-newhire.com, by fax at (800) 817-0099, or by mail.
Residents of Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia and Wisconsin can give the employer Form 42A809 to stop Kentucky withholding. Virginia residents must commute daily. Ohio residents who own 20% or more of an S corporation employer do not qualify. Local occupational taxes still apply.
Kentucky's wage payment rules:
$7.25 an hour.
No state paid sick leave law for private employers.
No state-run retirement program mandate for private employers.
Kentucky doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.
Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.
Kentucky's individual income tax is a flat 3.5% for 2026. The state missed its budget trigger for a cut to 3% in 2027, so the rate is expected to stay at 3.5%.
If you let an employee work all seven days of a workweek, pay 1.5x for the seventh day's hours unless they were not allowed to work over 40 hours that week.
Kentucky requires a paid 10-minute rest break for every 4 hours worked, plus a meal period between the 3rd and 5th hour.
The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.
File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).
Recurring deadlines. Put these on your calendar now.
FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.
Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.
Most LLCs, corporations and other limited liability entities owe the limited liability entity tax (LLET) under KRS 141.0401. The minimum is $175 a year.
File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.
Monthly, quarterly, or annual as assigned by the state at registration; returns are due the 20th of the month after the period, and filing must be electronic. File a zero return if you had no sales; skipping it can bring penalties.
Recurring dates for Kentucky and federal filings. A payroll service handles most payroll lines, but you should know they're happening.
| When | What | Filed with |
|---|---|---|
| Jun 30 | Annual Report due to Secretary of State ($15) | Kentucky |
| Apr 30 | Q1 unemployment insurance report and payment | Kentucky |
| Jul 31 | Q2 unemployment insurance report and payment | Kentucky |
| Oct 31 | Q3 unemployment insurance report and payment | Kentucky |
| Jan 31 | Q4 unemployment insurance report and payment | Kentucky |
| Assigned schedule | Sales tax return (file a zero return if no sales) | Kentucky |
| Jan 31 | W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941 | IRS / SSA |
| Jan 31 | 1099-NEC to contractors and IRS | IRS |
| 15th monthly | Federal payroll tax deposit (monthly depositors) | IRS |
| Apr 30 · Jul 31 · Oct 31 | Form 941 for the quarter | IRS |
| Jul 31 | Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension) | DOL (EFAST2) |
Last verified: October 27, 2026
The Kentucky state filing fee for an LLC is $40. That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.
You need to register to collect sales tax in Kentucky if you sell taxable products or services there. The state rate is 6%, and local taxes may add to it. Registration cost: Free.
Out-of-state sellers must register once their sales into Kentucky pass $100,000 a year. Having an employee or office in Kentucky also creates nexus right away.
Recurring filings include: file the Annual Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.
This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.
About · Privacy Policy · Referral Disclosure · Terms of Use · hello@openmybizbystate.com
© 2026 OpenMyBiz by State